Paper Trading: Practice and Learn Investing Without Risk

Paper trading is one of the best ways to learn about investing without risking any of your money.

Paper Trading: Practice and Learn Investing Without Risk

A paper trade is simply a simulated trade that allows you to buy and sell stocks (without risking money). The reason it’s called a “paper trade” is that back in the day before computers, aspiring investors would write their trades out on paper to practice before risking it in the real stock market.

What is Paper Trading?

Pros and Cons of Paper Trading

Paper trading provides a great way to gain exposure to the stock market, but as with everything, there are advantages and disadvantages. Here are some of the pros and cons of paper trading:

- Risk Zero Money - Test Out New Trading Strategies - Get Familiar with Your Trading Platform

Pros

Cons

- No Emotional Stakes - Missing Out on Profits - Not Perfect for Simulating Actual Conditions

Regardless of the cons of practicing trading, it’s still a fantastic way to get your feet wet and help you learn the ropes of investing. Trading and investing can be overwhelming, and it never hurts to practice a bit before diving in.

Why You Should Consider Opening a Paper Trading Account

- Research new trading platforms/brokerages with which you can open an account with. - If you already invest, see if your brokerage offers any paper or practice trading accounts.

How to Open a Paper Trading Account

- TD Ameritrade - Webull - E*TRADE - MarketWatch - TradeStation

Some Paper Trading Platforms to Check Out